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Another week, another round of bullish sentiment surrounding Wall Street darling Nvidia (NVDA).
This time it comes from Wedbush analyst Dan Ives, who spoke with Yahoo Finance Executive Editor Brian Sozzi for his Opening Bid podcast.
Recent headlines may have some bears and interested fans of the company on edge, especially the news out of Beijing that Nvidia is the subject of an antitrust investigation. If the company is found guilty, it could face a fine of $1 billion. The stock is down 12% from its record high in early November, including a 5% decline in the past week.
Regarding possible misery and fines, Ives takes a more optimistic and practical attitude. “I’m more focused on the cappuccino and making sure it’s hot in the morning,” he told Sozzi (see video above; listen below). “The bears are waking up, they’re focused on everything.”
Ives, who has nicknamed Nvidia CEO Jensen Huang “the godfather of AI,” recently returned from a trip to Asia. According to Ives, the statistics look favorable. “Fifteen to one demand to supply,” he said of Nvidia’s products. “Do you think this? [antitrust probe] does it stop?”
In one analogy, Ives likened what happens at Nvidia to a late-night party. Previously, he explained, it was 9 p.m., but the party itself lasts until 4 a.m. “There are many points where the DJ stops the music,” he said. “People hear a siren every now and then and think the police are coming.”
“You’re going to have nervous moments,” he added. “But we believe this is just the beginning: the second year of a decade-long build-up.”
Nvidia stock has soared this year, rising to the position of the most highly valued company in the world this summer. The new Trump administration’s cryptocurrency enthusiasm also put Nvidia on the map, as miners use the servers for their work.
Nvidia has been on the minds of many recent guests at Opening Bid. Bank of America analyst Vivek Arya told Sozzi that its Blackwell and upcoming Rubin GPUs, set to hit the market in the third quarter of 2025, prove there is “room to increase.”
In a Nov. 20 note, Arya reiterated a buy rating and a $190 price target. He praised the company for its products, for being a fast-growing megacap and for its solid free cash flow generation, he added. “We expect shares to tumble in the near term as investors digest the lack of ‘sizzle’, but we remain like the stock on substance.”
However, potential outside competitors are looking to join Nvidia and ride the wave.
“They’re the only game in town,” Ives said of Nvidia. “We assume there will be others who will benefit from this, but there is only one selling these chips and that is Nvidia.”
Ives predicts that the coming demand could boost Nvidia’s market cap by as much as $5 trillion in the foreseeable future. “The foundation increasingly starts with Nvidia,” he says. “That won’t change.”
Three times a week, Yahoo Finance Executive Editor Brian Sozzi fields full of insights and chats with the biggest names in business and markets Opening bid. You can find more episodes on our videohub or check your favorite streaming service.
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